Retirement Withdrawal Calculator
This calculator helps you plan retirement withdrawals using the Bengen Floor & Ceiling method. Enter your details below and click Run Simulation.
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🧓💰 The Bengen Floor & Ceiling Calculator – A Simple Guide to Smarter Retirement Withdrawals
Retirement is not just about saving money. It’s about using your money wisely so it lasts as long as you do.
One of the biggest questions every retiree faces is:
👉 “How much can I safely withdraw each year without running out of money?”
This is where the Bengen Withdrawal Strategy comes in.
🌟 What is the Bengen Strategy?
Back in the 1990s, financial planner William Bengen studied historical stock and bond returns to find a safe withdrawal rule for retirees.
He discovered the famous “4% Rule” – meaning you could withdraw 4% of your starting portfolio each year (adjusted for inflation) and have a good chance of not running out of money for 30 years.
But there’s a catch:
Markets don’t move in straight lines. Some years are great (bull market). Some years are terrible (like 2008 crash).
If you always blindly take inflation-adjusted withdrawals, you may deplete your money too fast in a downturn.
🛡️ The Floor & Ceiling Twist
To make withdrawals safer and more flexible, researchers added a floor and ceiling:
Floor (minimum %): The lowest annual withdrawal you allow yourself. Ceiling (maximum %): The highest annual withdrawal you allow yourself.
So, instead of always following inflation, your withdrawals are capped within a safe range.
👉 Example:
Initial portfolio = ₹1 crore Initial withdrawal = 4% (₹4 lakh per year) Floor = 3% (₹3 lakh per year) Ceiling = 6% (₹6 lakh per year)
If inflation says your withdrawal should go higher, but that exceeds ₹6 lakh → you stop at the ceiling.
If inflation-adjusted withdrawal falls too low (<₹3 lakh) → you take at least the floor.
This gives retirees stability + safety.
💻 How Does the Calculator Work?
This calculator is built to simulate retirement under both yearly and monthly withdrawals.
Step 1 – Inputs
You fill in:
Starting Money (your nest egg) First Year Withdrawal (%) – like 4% rule Floor (%) – minimum allowed Ceiling (%) – maximum allowed Average Growth Rate of investments (e.g., 5% per year) Volatility (how bumpy the ride is, e.g., 12%) Inflation rate (e.g., 3%) Years of retirement (say 30 years) Number of simulations (more runs = more accuracy) Mode: Yearly or Monthly
Step 2 – Simulations
The calculator runs hundreds of scenarios (Monte Carlo simulations):
Each year/month, your portfolio grows randomly (based on average returns + volatility). You withdraw money (following floor & ceiling rules). Portfolio balance updates. This repeats until your horizon ends or money runs out.
Step 3 – Results
You get:
Chart 📊 – showing how median retirement wealth changes over time. Table 📋 – showing “survival %” (chance your money lasts that year/month). PDF Download 📑 – to save your plan.
🧾 Example
Imagine:
₹1 crore nest egg 4% withdrawal = ₹4 lakh first year Floor = 3% (₹3 lakh min) Ceiling = 6% (₹6 lakh max)
The calculator may show:
After 30 years → 85% chance your portfolio survives. Median portfolio at end = ₹50 lakh.
That means:
👉 In most scenarios, you do not run out of money.
💡 Recommendation:
Use Yearly mode for planning big picture. Use Monthly mode if you want a realistic, pension-like view.
🧭 Why This Matters
Retirees can’t predict the stock market. Blindly following the 4% rule may work, but has risks. Adding floor & ceiling rules gives you flexibility: spend more when markets are good, cut back a little when they’re not.
It’s like driving with seat belts on – you still go forward, but with protection.
🏁 Final Thoughts
This calculator is not a crystal ball.
It doesn’t guarantee returns.
But it gives you a practical map of how your money could behave under different conditions.
Use it to:
Plan better withdrawals Avoid panic in downturns Sleep peacefully knowing you’ve tested your retirement strategy
